Allot acquires IT security co Optenet for $38m

Allot Communications CEO: Optenet will help Allot become a leading player in the consumer SECaaS market.

30 months after its previous acquisition, leading broadband solutions provider Allot Communications Ltd. (Nasdaq:ALLT; TASE: ALLT) is going to the well again. The company, which had $132 million in cash as of the end of 2014, today announced its acquisition of information security company Optenet, which provides security as a service (SECaaS) solutions.

The amount paid for the acquisition is likely to reach $38 million. Allot will pay $6.5 million in cash, and will add $5.5 million during the two years following the completion of the deal. More payments of up to $26 million will be made according to future performance over a five-year period, subject to achievement of a $140 million revenue target.

Allot expects the acquisition to increase its revenue by several million dollars in 2015, and to contribute slightly to its non-GAAP profit. Allot's solutions enable communication service providers to optimize and monetize their networks. Allot and Optenet have been cooperating since 2013. Allot President and CEO Andrei Elefant says, "During that time, we have won more than 10 service provider customers together, half of which are large tier one operators." Incorporated in Madrid, Spain, Optenet has 84 employees.

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"Our acquisition of Optenet will help Allot become a leading player in the consumer Security-as-a-Service market," Elefant says. "In addition to bringing value to stockholders, this strategic move augments our position in the security market, strengthens our network operator value-added services approach, and complements our cloud and enterprise vision."

The Allot share is traded at a $303 million market cap. In its previous acquisition in 2012, it bought Israeli company Oversi for $17 million.